Suspension of Company Activities

Name: Suspension of Company Activities | Mytax.lt
SKU: 210-1-1
Price: 139.15 EUR
Availability: InStock

Suspending company activities is a flexible option if you plan to resume operations in the future or are unsure about your decision. You can suspend the company’s activities and resume them later if needed.

115,00 € without VAT

Term

3 weeks from the date of document submission.

Included in the price

Preparation and submission of documents to the Centre of Registers.

Customer service

Fast and professional assistance from specialists;
Remote consultations;
Response within 1 business day.

You will have to provide

The company’s director must have a valid mobile electronic signature. If you do not have one, it can be quickly obtained at your mobile service provider’s store, even if you are not a subscriber – the process takes only a few minutes with an identity document. We recommend obtaining the mobile signature after ordering the service to avoid unnecessary delays. A mobile e-signature is the fastest and most convenient way to sign documents electronically, saving time and avoiding bureaucracy;
An extract from JADIS (Register of Participants). We can order it on your behalf;
An extract from JANGIS (Register of Beneficial Owners). We can order it on your behalf.
The number of hired employees.
The company balance for the start of activity suspension.
The period for which the suspension is planned (specifying the start and end dates).

Service Process

Service Order: You place an order and pay for the service on the website.
Document Submission: You will be asked to send all necessary data and documents.
Remote Data Update: Once we receive your information, we will prepare the documents and send them to you for signing. After agreeing on a convenient time, we will remotely submit the data to the State Tax Inspectorate.

What You Need to Know Before Suspending Company Activities

Before suspending company activities, it’s important to ensure that all financial and legal obligations are fully settled. Your business must have no outstanding debts to state institutions or business partners. Additionally, the company must not engage in any new transactions or generate income during the suspension period. A suspended company cannot employ staff and must pause all employment contracts. One of the key benefits of company suspension is the exemption from tax obligations and the requirement to submit financial statements during this period. Make sure your company meets all legal requirements before initiating the suspension process.

What Needs to Be Done Before Suspending Company Activities?

To legally suspend company activities, the first step is signing a formal decision by the company owner or shareholders. This decision must clearly state the intended suspension period.

Next, a request to temporarily stop submitting tax declarations must be submitted via the State Tax Inspectorate (STI) self-service portal, along with the signed decision.

If the company is a registered VAT payer, final VAT declarations must be submitted before applying for VAT deregistration. Additionally, profit tax declarations and financial statements must be submitted for the period leading up to the suspension.

It’s important to note that if the company has unpaid debts that cannot be resolved before suspension, the suspension process cannot proceed. In such cases, the only option may be to initiate bankruptcy proceedings.

Renewal of Company Activities

When suspending company activities, the request specifies the date until which the business will remain inactive. If no changes are made, the company will automatically resume operations on this specified date. However, if circumstances require the business to restart earlier than planned, this can be done. In such cases, the company must notify the relevant institution that granted the exemption from obligations in writing within 5 business days and resume the submission of required documents and other legal obligations.

Is Suspending Company Activities a Viable Solution?

If your company is considering suspending its activities, it may be because it is not actively operating or has no immediate plans to do so. While you could choose to liquidate the company and permanently cease operations, suspending activities is often an attractive alternative—especially if the company’s financial situation is stable and bankruptcy is not imminent.

Starting a new company may seem like a quick solution, but it comes with the challenge of building a new reputation and establishing trust with business partners. A company’s name, reputation, and customer relationships are valuable assets that take time and effort to develop. Instead of rushing into liquidation, consider suspending activities as a way to preserve these valuable intangible assets. This gives you the opportunity to return to business at a later time, perhaps with fresh ideas and a renewed strategy.

Business Suspension – Where to Start?

Suspending a business is not a common procedure, and when starting a business, you probably didn’t consider this option. However, if you’re reading this, it may be relevant to your situation. You likely have more questions than answers and are uncertain whether suspending operations is the right decision. If you’re in this situation, it’s essential to consult with specialists in your industry. Once they understand your specific circumstances, they can provide tailored solutions and help you determine if business suspension is the best choice for you.